On November 3, 2025, the New York Attorney General announced a $1.1 million settlement with the U.S. subsidiary of the world’s largest beef producer, ending the state’s lawsuit accusing the company of misleading the public about its environmental practices and sustainability commitments. The complaint, filed in February 2024 in New York state court, alleged that defendants JBS USA Food Company and JBS USA Food Company Holdings (together, JBS USA), and JBS USA’s parent, subsidiary, and affiliate companies, misled the public about a pledge to reduce greenhouse emissions and their stated goal to be “Net Zero by 2040.” However, JBS USA now faces a new false advertising challenge involving essentially the same claims, joining a growing number of companies getting sued over aspirational environmental claims.
These false advertising lawsuits come at a time when many companies are under pressure to make certain climate claims in the EU and the U.S., including to comply with new mandatory reporting requirements in California next year under SB 253 and SB 261. Starting on January 1, 2026, the latter will require biennial reporting of “climate-related financial risks” by certain companies (i.e., U.S. entities with total annual revenue exceeding $500 million doing business in California), including posting these reports on the company website. Meanwhile, SB 253’s first set of reports (on Scope 1 and 2 greenhouse gas emissions by U.S. entities with total annual revenue exceeding $1 billion doing business in California) are expected to be due by June 30, 2026. As these deadlines approach, companies should be aware of the recent challenges against JBS USA and others and they should make sure that any environmental and climate-related marketing claims align with the information included in required reports.
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